SECTION 3. COMMUNITY PROFILE 1 1 ECONOMIC DEVELOPMENT 2 local - PDF document

1 SECTION 3. COMMUNITY PROFILE 1

1 ECONOMIC DEVELOPMENT 2 local economy 3 Economic Activity . In 2018, the Vermont Department of Labor reported that there were 4 approximately 5,700 jobs and 468 employers in the city. This figure includes only those workers 5 eligible for unemployment insurance; employment categories such as the self-employed and 6 business owners are not included. If all employment in the city were to be counted, the figure would 7 likely be more than 6,500 jobs. 1 The number of jobs counted by the Department of Labor each year 8 has ranged between 4,000 and 6,000 for the past 20 years since reaching a one-year peak of 5,710 in 9 2018. 10 Figure 1. Employment in Barre City 1988 to 2018 11 Source: Vermont Department of Labor Employment in Barre City 5,800 5,600 5,400 5,200 12 5,000 4,800 4,600 4,400 4,200 4,000 2000 2013 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 2018 13 14 There has been significant job growth in Barre City since 2010, and in surrounding towns. Berlin has 15 seen the greatest growth in employment, surpassing Barre City in total jobs in 2002, with the trend 16 reversing back to Barre City beginning in 2014. 17 18 During the past 20 years, Barre City has experienced growth in the following sectors: 19 20  State Government.  21 Education and health services. 22  Leisure and hospitality.  23 Professional and business services. 24  Transportation and Warehousing. 1 Estimate based on a comparison of U.S. Bureau of Economic Analysis statistics for Washington County to the Vermont Department of Labor statistics. 2

1 2 These gains, however, have been offset by losses in the manufacturing, construction, retail trade, and 3 wholesale trade sectors. In 1989, manufacturing accounted for nearly 25% of the jobs in the city and 4 more than 30% of earnings; in 2007, the sector represented only 11% of jobs and 14% of earnings, 5 and in 2018, the sector represented only 8% of jobs and 11% of earnings. Barre City should focus 6 economic development efforts on the better performing sectors to create a healthier economy for the 7 city in the 21st century. 8 9 Barre City businesses had gross receipts (revenues) of approximately $570 million in 2018 according 10 to the Vermont Department of Taxes, the tenth-highest amount among Vermont municipalities. Barre 11 City ranked eighth in total retail sales during 2018 with receipts of nearly $124 million. Tax receipts 12 for Barre City businesses experienced neither substantial increases or decreases during the 2000 ’ s. 13 14 Labor Force . In 2018 , the Vermont Department of Labor counted the city’s labor force at 5,138 15 people with an unemployment rate of 3.4 %. The size of the city’s labor force has remained relatively 16 stable during the past 20 years. Barre City’s unemployment rate has historically been higher than 17 state and regional averages. Employment has a tendency to suffer sharper declines during economic 18 downturns and rebound more slowly during economic recoveries within the city as compared to the 19 region or state as a whole. 20 Barre City Unemployment Rate 1990 - 2018 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Barre City Unemployment Rate Statewide Unemployement Rate 21 22 23 Historically, a majority of employed Barre residents worked within the city. In recent years, that 24 percentage has declined so that currently less than one-third of employed residents are working 25 within the city. The average workforce commuting into Barre City is 66%. Living in close proximity 26 to one’s job has numerous benefits for workers, their families and the broader community – all 27 stemming from a shorter commute. The average commute in Barre City remains low by Vermont 28 standards, but has been increasing. Growth in the number of jobs in the city will help attract new 29 residents, including a growing number of people seeking a lifestyle less dependent on driving. 30 Figure 2. Place of Employment for Barre City Residents 31 Source: US Census Bureau 3

1 2 Commercial and Industrial Property . According to the 2009 Grand List, nearly one-quarter of the 3 city’s land is developed for commercial or industrial use (approximately 520 acres). Commercial and 4 industrial property accounts for approximately 35% of the city’s property tax base. While there are 5 limited opportunities for new “greenfield” commercial or industrial development within the city, 6 there are ample opportunities for: redevelopment of vacant “brownfield” sites; rehabilitation and 7 adaptive re-use of the existing building stock; and full use and occupancy of under-utilized 8 properties. 9 10 The limited availability and cost of commercial and office space in nearby Montpelier has led to a 11 realization among some business owners that there is an ample supply of space available at 12 significantly less cost in Barre City, only minutes away from downtown Montpelier. 13 14 A revitalization of commercial and industrial property would serve not only to bring jobs into the 15 city, but would benefit homeowners by increasing the value of commercial and industrial property 16 thus reducing the percentage of the property tax burden borne by residential property owners. 17 18 Voters approved adopting the Local Option Meals and Rooms Tax, and Alcoholic Beverage Tax in 19 March 2018. It went into effect July 2018, with the first quarterly collection coming in October 2018. 20 This allows for the City to claim 1% of meals, rooms and alcohol sold in the City, minus processing 21 fees by the Department of Taxes, and was originally projected to raise approximately $215,000 22 annually. Due to errors in the way the Department of Taxes was reporting tax collections on its 23 website, the actual collections are less than projected. The first four quarters saw Local Option Taxes 24 of $146,000 collected. The Department of Taxes has corrected its reporting system, and revised 25 annual projections are $150,000. As per the charter language approved by the voters, all funds 26 received through the Local Options Tax are designated for street and sidewalk reconstruction. 27 Figure 3. Commercial and Industrial Property Map 28 4

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 downtown revitalization 17 Overview . Barre City’s downtown business district has served as a commercial center for Central 18 Vermont throughout our city’s history. Beginning in the 1960’s, the downtown’s role as a commercial 19 center began to decline as new retail development occurred outside the city around the interstate 20 exits and along highway corridors. Many downtown retailers were unable to adapt to the changes in 21 how and where people shopped, resulting in a cycle of downtown business closures, vacancy and 22 disinvestment. 23 5